Moody’s Reviewing AMP Ratings for Possible Upgrade

June 24, 2004

Moody’s Investors Service announced that it has placed the long-term ratings of Australia’s AMP Ltd. group of companies under review for possible upgrade.

Moody’s said the “the review reflects AMP’s successful repurchase of A$747 million [U.S. $514 million] of its offshore bonds, following a reverse tender process conducted last week.” The repurchase represents a sizeable reduction in debt. Moody’s also noted that its review would “take into consideration AMP’s success in maintaining its strong branding and position in the Australian market.”

The rating agency indicated that the “demerger of its UK operations in December last year appears to have had a limited effect on AMP’s brand image in terms of new business volumes.” It also noted that the “review will also focus on AMP’s business strategy, its half-year results, whether current lower leverage ratios can be sustained and its ability to maintain the flow of new business.

“The flagship company, AMP Life, currently has an insurance financial strength ‘A1’ rating.”

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